A corporation bought a machine for RP 8,000 with a commercial useful life of 4 years and a fiscal useful life of 3 years, but no salvage value, in early 2019. In both commercial and fiscal terms, machines are assembled utilizing the straight-line method. In addition, the company will receive Rp. 6,000 in 2019, with the warranty charge anticipated to be 10% of revenue. The warranty cost is due in fiscal year 2022. The general rate of taxation is 30%. Required: Calculate and explain the deferred tax asset or obligation for the two transactions at the end of 2019!
A corporation bought a machine for RP 8,000 with a commercial useful life of 4 years and a fiscal useful life of 3 years, but no salvage value, in early 2019. In both commercial and fiscal terms, machines are assembled utilizing the straight-line method. In addition, the company will receive Rp. 6,000 in 2019, with the warranty charge anticipated to be 10% of revenue. The warranty cost is due in fiscal year 2022. The general rate of taxation is 30%. Required: Calculate and explain the deferred tax asset or obligation for the two transactions at the end of 2019!
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...
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A corporation bought a machine for RP 8,000 with a commercial useful life of 4 years and a fiscal useful life of 3 years, but no salvage value, in early 2019. In both commercial and fiscal terms, machines are assembled utilizing the straight-line method. In addition, the company will receive Rp. 6,000 in 2019, with the warranty charge anticipated to be 10% of revenue. The warranty cost is due in fiscal year 2022. The general rate of taxation is 30%.
Required:
Calculate and explain the deferred tax asset or obligation for the two transactions at the end of 2019!
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